CELESTICA INC (CLS) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CLS • CA15101Q2071
285.77 USD
+4.78 (+1.7%)
Last: Feb 2, 2026, 11:11 AM
Taking everything into account, CLS scores 6 out of 10 in our fundamental rating. CLS was compared to 123 industry peers in the Electronic Equipment, Instruments & Components industry. CLS scores excellent on profitability, but there are some minor concerns on its financial health. CLS has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
- In the past year CLS was profitable.
- In the past year CLS had a positive cash flow from operations.
- CLS had positive earnings in 4 of the past 5 years.
- CLS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 10.85%, CLS belongs to the best of the industry, outperforming 91.87% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 35.33%, CLS belongs to the top of the industry, outperforming 95.94% of the companies in the same industry.
- With an excellent Return On Invested Capital value of 21.33%, CLS belongs to the best of the industry, outperforming 96.75% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CLS is above the industry average of 8.85%.
- The 3 year average ROIC (11.43%) for CLS is below the current ROIC(21.33%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.85% | ||
| ROE | 35.33% | ||
| ROIC | 21.33% |
ROA(3y)4.63%
ROA(5y)3.55%
ROE(3y)15.02%
ROE(5y)11.3%
ROIC(3y)11.43%
ROIC(5y)8.93%
1.3 Margins
- CLS has a Profit Margin of 6.35%. This is in the better half of the industry: CLS outperforms 72.36% of its industry peers.
- In the last couple of years the Profit Margin of CLS has grown nicely.
- CLS has a better Operating Margin (7.33%) than 70.73% of its industry peers.
- In the last couple of years the Operating Margin of CLS has grown nicely.
- CLS's Gross Margin of 12.04% is on the low side compared to the rest of the industry. CLS is outperformed by 76.42% of its industry peers.
- In the last couple of years the Gross Margin of CLS has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.33% | ||
| PM (TTM) | 6.35% | ||
| GM | 12.04% |
OM growth 3Y24.27%
OM growth 5Y29.03%
PM growth 3Y34%
PM growth 5Y30.13%
GM growth 3Y8.03%
GM growth 5Y10.39%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CLS is still creating some value.
- There is no outstanding debt for CLS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
- An Altman-Z score of 6.68 indicates that CLS is not in any danger for bankruptcy at the moment.
- CLS has a Altman-Z score of 6.68. This is amongst the best in the industry. CLS outperforms 82.93% of its industry peers.
- CLS has a debt to FCF ratio of 1.97. This is a very positive value and a sign of high solvency as it would only need 1.97 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 1.97, CLS is doing good in the industry, outperforming 78.05% of the companies in the same industry.
- CLS has a Debt/Equity ratio of 0.37. This is a healthy value indicating a solid balance between debt and equity.
- The Debt to Equity ratio of CLS (0.37) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.37 | ||
| Debt/FCF | 1.97 | ||
| Altman-Z | 6.68 |
ROIC/WACC1.44
WACC14.78%
2.3 Liquidity
- A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.47, CLS is doing worse than 75.61% of the companies in the same industry.
- A Quick Ratio of 0.88 indicates that CLS may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.88, CLS is doing worse than 85.37% of the companies in the same industry.
- The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
- CLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 54.59%, which is quite impressive.
- Measured over the past years, CLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 43.67% on average per year.
EPS 1Y (TTM)54.59%
EPS 3Y46.94%
EPS 5Y43.67%
EPS Q2Q%70.27%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%43.57%
3.2 Future
- Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 33.06% on average per year.
- Based on estimates for the next years, CLS will show a very strong growth in Revenue. The Revenue will grow by 28.15% on average per year.
EPS Next Y38.59%
EPS Next 2Y37.93%
EPS Next 3Y33.06%
EPS Next 5YN/A
Revenue Next Year32.94%
Revenue Next 2Y32.93%
Revenue Next 3Y28.15%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 47.16, CLS can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as CLS.
- The average S&P500 Price/Earnings ratio is at 28.32. CLS is valued rather expensively when compared to this.
- CLS is valuated quite expensively with a Price/Forward Earnings ratio of 34.03.
- The rest of the industry has a similar Price/Forward Earnings ratio as CLS.
- CLS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.16 | ||
| Fwd PE | 34.03 |
4.2 Price Multiples
- CLS's Enterprise Value to EBITDA is on the same level as the industry average.
- CLS's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 82.56 | ||
| EV/EBITDA | 33.15 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of CLS may justify a higher PE ratio.
- CLS's earnings are expected to grow with 33.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.22
PEG (5Y)1.08
EPS Next 2Y37.93%
EPS Next 3Y33.06%
5. Dividend
5.1 Amount
- No dividends for CLS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CELESTICA INC / CLS FAQ
Can you provide the ChartMill fundamental rating for CELESTICA INC?
ChartMill assigns a fundamental rating of 6 / 10 to CLS.
What is the valuation status of CELESTICA INC (CLS) stock?
ChartMill assigns a valuation rating of 4 / 10 to CELESTICA INC (CLS). This can be considered as Fairly Valued.
What is the profitability of CLS stock?
CELESTICA INC (CLS) has a profitability rating of 8 / 10.
What is the valuation of CELESTICA INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CELESTICA INC (CLS) is 47.16 and the Price/Book (PB) ratio is 16.21.
How financially healthy is CELESTICA INC?
The financial health rating of CELESTICA INC (CLS) is 6 / 10.